What can be done to address luxury counterfeiting? An integrative review of tactics and strategies

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ORIGINAL ARTICLE

What can be done to address luxury counterfeiting? An integrative review of tactics and strategies Nelson Borges Amaral1  Revised: 1 June 2018 © Springer Nature Limited 2020

Abstract Luxury counterfeiting has received a great deal of interest from marketing academics and professionals. The present article presents a critical summary of the current body of knowledge in order to propose a new anti-counterfeiting framework. While recent reviews have helped us understand the factors that drive the demand for luxury counterfeits, there is still limited understanding about the potential tactics and strategies that can be used to reduce counterfeiting. The present article begins to address this gap by summarizing the literature on the supply and demand of luxury counterfeits as well as a critical review of the tactics and strategies that are available. Through this review, a new integrative framework is proposed that calls for increased collaborative efforts among key stakeholders and a more proactive and international approach to luxury anti-counterfeiting measures. Keywords  Luxury · Counterfeit · Branding · Trademark · Strategy

Introduction The dramatic global increase in the availability of counterfeit luxury goods (see ICC Report 2013) has been motivated by returns on investment that are often greater than drug trafficking (Wall and Large 2010) with significantly lower levels of risk for the parties involved. Estimates of the annual costs of counterfeiting are as high as $600 billion (Wall and Large 2010). While counterfeiting is also a problem for many other sectors (e.g., pharmaceuticals, auto parts, food), luxury brands are the most commonly seized counterfeit items by the US Customs and Border Protection Agency (Chaudhry and Walsh 2006). The supply and demand of these counterfeits negatively impact various key stakeholders, including brand managers, consumers, federal, state and local governments, and society as a whole. Despite the numerous negative effects of this industry, the empirical evidence for drivers of counterfeiting is mixed, and reviews of luxury anti-counterfeiting tactics and strategies are lacking, which makes it difficult for managers and policymakers

* Nelson Borges Amaral [email protected] 1



Ontario Tech University, Oshawa, Ontario, Canada

to make informed decisions about the best ways to combat the problem. A recent summary of the effectiveness of anti-counterfeiting strategies included 32 articles, from 1985 to 2015 (Yang and Sonmez 2017). None of those articles were concerned exclusively or specifically with luxury counterfeits, only three of them included luxury counterfeit goods in their analysis in any way, and six were broad enough that some of the strategies were relevant to luxury counterfeit goods. Moreover, while researchers of other counterfeit product categories have noted that demand-side research is lacking (see e.g., Bird 2007; Swami et al. 2009), research into luxury counterfeits, by contrast, has been dominated by consumerrelated (i.e., demand sid